Articles by Neil McDonald

After months of speculation the China-based Sichuan Tengzhong Heavy Industrial Machinery Co Ltd is now the new owner of General Motor's Hummer brand. The deal needs final approval from both the Chinese and US Governments, but executives on both sides are confident this will happen by the end of the year.The change of ownership is unlikely to affect its Australian operations in the short term. Spokesman Scott Whiffin, says Hummer remains a strong part GM Premium Brands, which includes Saab. "At this stage it's absolutely business as usual," he says. "There is no change to the dealer network or the distribution channel. "In Australia there are no changes for customers or dealers to sales and service arrangements. Likewise warranty agreements will continue to be honoured."GM-Holden is believed to have brought in consultants to look at the ongoing viability of both Hummer and Saab. Tengzhong will acquire ownership of the brand, trademark and trade names, as well as license rights necessary to build Hummers. GM builds three different Hummer models, the military-based H1 and H2 and H3 but only the H3 is sold locally. H3 sales locally have halved this year as buyers retreat from the gas-guzzling off-roader because of speculation over its future. Just 403 H3s have found buyers compared to 923 for the same period last year.As part of the agreement, Tengzhon will maintain existing dealer agreements with the dealership network but it's not sure what this means for Australia's 20-odd dealers. Tengzhong will hold an 80 per cent stake in Hummer through an investment entity. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed mineral producer Lumena, will hold the remaining 20 per cent.Details of the agreement were not disclosed but sources have said the deal is worth about $170 million. GM president and CEO, Fritz Henderson says Hummer remains a strong global niche brand. "This agreement signifies another important milestone in writing the next chapter for both GM and Hummer," he says. Henderson says the combination of Tengzhong financing and Hummer's knowledgeable leadership team was a good fit.Under the agreement, Hummer will contract vehicle manufacturing, key components and business services from GM during a transitional period. The deal is expected to secure more than 3000 jobs in the US. Hummer's existing leadership team remains in place and James Taylor continues as chief executive officer. "We are fortunate to have a partner who understands and recognises the importance of continuing investment in Hummer's heritage with a view toward capitalising on global opportunities," Taylor says.Tengzhong will accelerate more efficient powertrains for the brand and new six-speed transmissions. From next year Hummers will have E85 FlexFuel engines on its H3 models. A turbodiesel engine is also on the cards. The Chinese deal follows the off-loading of GM's other premium brand, Saab, to Swedish sportscar maker Koenigsegg. Hummer first came to prominence in the 1990 Gulf War as a military vehicle.

Its plan to mandate ESC on vehicles from January 1, 2011, has been condemned by the car industry and leading motoring groups as unworkable and a waste of money.The State is proposing to make ESC compulsory 10 months ahead of a Federal Government rollout for the safety feature. Carmakers and the Federal Chamber of Automotive Industries argue that the government's move will cost about 8000 new vehicles sales across the state and millions in lost stamp duty revenue. "There is no overall benefit to the community," an FCAI spokesman says.Apart from the FCAI, the Victorian Automotive Chamber of Commerce also believes the Brumby Government's 'go-it-alone' strategy will result in confusion, inconsistencies and loopholes.Last week Roads and Ports Minister, Tim Pallas announced that the Government would push ahead with its plan to mandate ESC. Pallas has exempted light commercial vehicles and will be able to exempt certain vehicles. The proposed legislation also exempts low volume high-performance grey imports and "specialist and enthusiasts' vehicles", which the FCAI argues are the vehicles most in need of ESC because they are popular with young, inexperienced drivers.ESC, which adds about $1000 to the price of a car, will be rolled out in other States from November 1, 2011. At present many budget cars are not fitted with the feature and other brands offer it as a cost-extra option.Mitsubishi Australia spokesperson, Lenore Fletcher, echoed the concerns of carmakers by saying that both the industry and buyers needed clarification on exemptions and how it will be applied. "There are so many variables and we need some clear idea of whether this will be phased in or an absolute from the introduction date," she says. Fletcher says manufacturers are bringing in the technology "as fast as they can".The VACC's senior manager government and public affairs, David Russell says the chamber supports any initiative to improve vehicle safety and to reduce the road toll. "However, there are likely to be impacts on manufacturers, dealers and consumers," he says. Both the VACC and FCAI want clarification on what vehicles will be exempt.The FCAI says the new law will require Victorian vehicles to be fitted with their own compliance label, or vehicle identification number, as well as the Australian Design Rule compliance label, at a cost of $5.80 per vehicle. All carmakers will also need to submit a list of VINs to VicRoads for approval.The FCAI says the regulation will be redundant by November 1, 2013 when all vehicles must have ESC as standard. The Victorian proposal also has no sunset clause. Some models will be excluded from registration in Victoria even though they meet all relevant ADRs.

The cheap vehicle identification labels used on HiLux, Prado and LandCruiser models make them easy targets for thieves, according to the National Motor Vehicle Theft Reduction Council.The council's chief executive, Ray Carroll, said the Toyota models were over-represented in the latest vehicle theft statistics because the labels could be easily forged by thieves. Insurance payouts for the Toyotas amounted to more than $10 million, he said. "While this is money paid by insurers, it ultimately comes from motorists' pockets," Carroll said. "The real cost is to motorists though who have their cars stolen."He said the current labels can be easily duplicated or modified by anyone with a home computer and basic software. The new forged identity label is then reapplied to the stolen vehicle.The council wants carmakers to switch to a new high-tech - but more expensive - label called Identitek. So far only 10 carmakers and motorcycle company Kawasaki use the Identitek product. The label costs about $1.50 per vehicle compared to 40c for the aluminium version.It is made from layers of plastic that self destruct if tampered with. The label has imprinted codes much like a hologram that cannot be counterfeited, altered or removed from the vehicle intact.Carroll said Toyota Australia knew its vehicles were among some of the country's most attractive targets for profit-motivated thieves. But Toyota Australia spokesman, Mike Breen, said a high-tech "theft-proof" label would soon be rolled out on its imported lineup, which includes HiLux, Prado and LandCruiser. "We're working on it now," he said.Breen said the label was already in use on Toyota's Camry and Aurions. Last year 13,500 vehicles were stolen in Victoria. The most popular model chosen by thieves are older model Holden Commodores. Nationally 62,000 vehicles were stolen last year, down from a 2001 peak of 140,000 vehicles.Insurance claims April-June LandCruiser 70/100 Series: 62 claims worth $2,013,104Prado 120 Series: 36 claims worth $975,420HiLux GGN25R: 16 claims worth $402,753Most popular cars for thieves Holden Commodore (1986-1991), VX, VZ, VZ.Ford Laser (1989)Toyota Camry (1992)* Figures from Theft CouncilVehicles using Identitek Audi A3, A4, A6, A8, R8, Q5 (Not Q7 & TT)BMW 1 Series, 3 Series, 7 Series, X1, X5, X6, and Z4 (Not 5 & 6 Series or X3)Chrysler All Chrysler, Jeep & Dodge modelsHSV All modelsHyundai All models Isuzu All commercial modelsLotus All modelsMercedes-Benz All passenger and light commercialsSmart All modelsMitsubishi All modelsNissan All modelsKawasaki All motorcycles 

Ferrari has created a one-off special-edition Ferrari 599 GTB Fiorano that will be auctioned at a charity event in Beijing next month. What makes the car different is its paint scheme. This one-of-a-kind Ferrari has been given the once-over by celebrated Chinese artist Lu Hao. Instead of Ferrari's signature red or yellow, Lu Hao has used a "cracked glaze" paint pattern of the coveted Song Dynasty-era Ge Liln porcelain, signed by the artist himself. There is also a jade engine starter button, luggage featuring a map of the Silk Road trade route, Chinese script instruments and a name plaque. The glazed V12 sportscar is one of 12 special edition 599 China models that will be sold in China. Lu Hao was also responsible for the paint scheme on the other cars. However, they are less polarising. The artist opted for a body done in red - a Ferrari shade called Rosso Fuoco, or fire red - but the pillars and roof are painted a shade of medium grey. "The 599 China Limited Edition model is a true masterpiece, combining rich Chinese artistic heritage with Italian design in stunning approach," according to Ferrari Asia Pacific CEO Marco Mattiacci.

The Japanese automaker showed off its tiny electric vehicle in full police livery at the recent National Police Show in the UK. Mitsubishi says it has "inundated" with requests from British police departments to put the vehicle through local trials. The first i-MIEV police package will be used by the West Midlands Police.

But the i-MIEV-based Cargo remains a wish-list car for the Adelaide-based local Mitsubishi operations. Mitsubishi Australia's chief of brand management, Paul Unerkov, reckons the Cargo would have great potential locally.But with demand for the i-MIEV already outstripping supply in Japan and the factory running flat out to build batteries for the city car, he says any prospect of a Cargo-style electric van being sold locally are a long way off. "The Cargo could certainly work here," he says. "But the issue is battery supply. "Mitsubishi is tripling production of the batteries for the i-MIEV to meet demand."Demand for the i-MIEV in Japan has also meant its arrival into local showrooms has been pushed back to the first quarter of next year. But Mitsubishi Australia chief, Rob McEniry, is confident he will get the numbers he wants and the car will arrive with a price point close to the Toyota Prius. "We are working on our allocations now," he says.The Cargo, along with the PX-MIEV concept all-wheel drive, will be unveiled at next week's Tokyo Motor Show. Like the i-MIEV, the Cargo should have a range of 160km and top speed of 130km/h, making it perfect for inner-city delivery applications.At 3395mm long and 1860mm high, the van is 36mm longer and 260mm higher than the cute i-MIEV. By reconfiguring the rear area Mitsubishi has been able to free up 1743 litres of space.Like the four-door, the Cargo has copied the original's curvaceous front section. But from the B-pillar back, the electric car morphs into a high-riding boxy wagon that gives it a distinctive on-road presence. The car's big plus is its boxy load-carrying area. Mitsubishi has ensured that every centimetre of available space has been utilised. The height of the compartment floor has also been designed to facilitate loading and unloading of luggage and make it more user-friendly. Inside, the cabin shares the clean and simple elements of the i-MIEV.The i-MIEV's electric engine develops 47kW/180Nm and drives the rear wheels. Its permanent magnet synchronous engine is supported by a lithium-ion battery pack from the newly formed joint venture company Lithium Energy Japan. The car can be recharged overnight or in about 30 minutes using a quick-charge outlet. 

Even though the September market showed mixed results across all segments, luxury off-roaders and sportscars were the exception, rocketing up the sales charts.VFACTS industry figures show a 31 per cent lift in luxury off-roader sales and 17 per cent rise in sportscar sales last month. The luxury off-roader numbers were buoyed by strong sales for the BMW X5, and several newcomers, including the Volvo XC60, Lexus LX, RX and Audi Q5.With the weather warming up, convertibles helped feed the lift in sportscar numbers. Perennial favourites like the Mini Cooper cabrio, Saab 9-3 cabrio and Mazda MX5 helped bolster sportscar sales for the month. The Audi A5, BMW Z4, Mercedes-Benz SLK and Volkswagen Eos also fueled buyer interest.The SUV segment overall was up almost 2 per cent compared to September last year. Other segments are also on the rise, thanks to the Federal Government's small business tax stimulus package. Compact off-roaders and light commercial van sales are up 5 per cent while 4x4 utes, light cars and medium car sales are also up.The Federal Chamber of Automotive Industries chief executive, Andrew McKellar, says the robust September result is proof of further signs of a consolidation in the new vehicle market. "This was a good month with a stronger than expected result," he says.Overall 78,131 cars, SUVs and commercial vehicles were sold last month. This is down 3.5 per cent - or 2807 vehicles - compared to September last year. Despite a lift in optimism, McKellar says private buyers are still reluctant to return to the market. "Some areas of buyer confidence remain fragile and an interest rate rise is premature," he says. "The economic stimulus has resulted in positive business sales but private buyers need the confidence to return to showrooms in larger numbers."Year-to-date 681,974 new vehicles have been sold, down 13.1 per cent compared to the same period last year.Toyota remains in the top sales position for September with 16,007 vehicle sales, ahead of Holden with 9744 and Ford with 8427. Toyota's senior executive director sales and marketing, David Buttner, says the company expects to pass 50,000 sales in the last quarter for the first time this year. "Toyota is holding a substantial order book into October, and it is gearing up for an end-of-year rush from the business sector," Buttner says. Buttner says the company has fixed stock shortages of the top-selling HiLux.TOP 10  BRANDS    Sept           YTD 2009 (+/- on 2008)Toyota                   16,007             142,898       -22.3%Holden                      9744               85,667       -14.0%Ford                          8427               70,289       -13.7%Mazda                       7205               57,695         -7.2%Hyundai                    5484               47,625        36.4%Mitsubishi                4312               40,092        -16.3%Nissan                       4079               38,446       -15.8%Honda                       3939               31,787       -22.9%Subaru                      2807               27,225         -9.0%Volkswagen             2307               22,717         -5.4% 

As these sketches show, the peppy new Micra is evolving and Nissan Australia has bigger plans for the little hatch.Unlike the current Micra, which is available as a single four-door 1.4-litre for $15,990, the Japanese carmaker is looking to expand the model makeup. That means a three-door, as well as a cheaper manual model, are on the cards.In other markets the current car is also available with 1.2-litre or 1.6-litre four-cylinder engines. However, Nissan Australia spokesman, Jeff Fisher, is coy on predictions of just what models will arrive or the likely engines. "We'll have a manual but a three door? I'm not sure about that," he says.Nissan's newest mini will be critical in helping the company's push to becoming the leading import brand over the next three years. Nissan Australia managing director, Dan Thompson, has set the challenge to be the number 1 importer by 2012.The car is set to hit local showrooms late next year after debuting at the Geneva Motor Show in March. As the images show, the Micra does not deviate too much from the proven cheeky design formula of the current car. It will retain the similar compact dimensions but is expected to get slightly more cabin room, will be safer and better equipped. Nissan may also choose to leverage its Renault ties by introducing an small ultra-frugal turbo-diesel.Fisher says the new Micra will be a much more significant player for the brand than the current car, which is consistently selling about 500 a month. "It's been a good performer," Fisher says. "In fact it has outperformed our forecasts."Nissan Australia reintroduced the Micra badge in 2007 after a lacklustre foray into the local market back in the mid-1990s ."The whole idea of the current car was to get people more aware of the name and we were able to get it at a knockout price," Fisher says.Apart from the sketches, few other details are known, but Nissan has confirmed that it will go into production alongside the Tiida in Thailand from next March. It will also be built in India, where Suzuki sources its micro Alto hatch, as well as China. "There are a couple of possibilities about sourcing," Fisher says.The next-generation Micra, along with the front-drive Dualis and replacement for the Tiida hatch, are part of Nissan's bid to overtake Mazda, Hyundai and Mitsubishi as the country's favourite all-import brand. However, Fisher says the current Tiida will soldier on for a few years. He also hosed down speculation that the next-generation small hatch and sedan would revert to the better known Pulsar name of the previous car. 

Melbourne-based right-hand drive conversion company, the Corvette Clinic, is about to start work converting the new Chevrolet Camaro for an eager local audience.Company owner, Peter Whiston, says his first Camaro - a range-topping 2SS V8 - is on the water and due in Melbourne in weeks. "We have quite a few interested people keen to get one," he says.With the Holden Monaro gone, Whiston reckons the Camaro will slide right in for those buyers looking for a high-performance General Motors two-door V8 coupe.Whiston says he will concentrate on converting the luxury V8 models only. "I really don't think there would be a market for the V6," he says. "However, if someone wanted one we'd probably do it."The 2SS sells for just over $35,000 in California but landed here and with all the engineering work required to convert it to right-hand drive, including the new dashboard, Whiston expects to sell the cars for between $130,000 and $140,000. At that price, he says people are still queueing up. The rear-drive 2SS gets a 6.2-litre V8 that develops 318kW/569Nm in a power package that almost goes toe-to-toe with the HSV GTS.The car gets standard Bluetooth, leather upholstery, Boston Acoustics stereo and climate control air conditioning.Despite its underpinnings being based on the VE Commodore and sharing the same V6 and V8 engines, Whiston says the Camaro uses a different steering rack as well as heating and ventilation systems. "From a conversion point of view, there is really little interchangeable between the Commodore and Camaro," he says.Whiston is confident he will have the small, but lucrative, Camaro business to himself for the time being. However, GM's vehicle line executive in charge of global rear-wheel-drive vehicles, Gene Stefanyshyn remains a big enthusiast for a right-hand drive version of the muscle car.In an interview with Carsguide earlier this year he said getting the Camaro to Australia was not a lost cause. However, building volume right-hand drive versions would cost about $35 million to engineer.Given General Motors’ financial situation and the global economy, a right-hooker Camaro remains a low priority. The Camaro has been a welcomed hit for downtrodden General Motors in the US.More than 80,000 are expected to be sold this year and order banks are growing for next year.You asked for it. So Carsguide has obliged. We have received more than 200 requests from readers to bring the Camaro to Australia. So we've handed on all your letters and thoughts to GM-Holden chairman Alan Batey. We'll keep you posted on how the campaign goes.  

As the first shoots of spring emerge, new car sales figures for September show a jump in convertible buyers. And money is no object, with many prepared to spend up big to pop the roof down.VFACTS industry figures show a modest sales surge of the Mazda MX5, Mini Cooper cabrio, Volkswagen Eos and Audi A3 convertible - all costing more than $40,000. Further up the price list Audi's A5 cabrio, the BMW Z4, Mercedes-Benz SLK and Volkswagen Eos are also popular with prices for some of the German cars topping out at more than $80,000.Dealers and carmakers say the warmer weather is helping. Mazda spokesman, Steve Maciver, said the order books for the company's popular MX5 were growing. "It's a combination of things but once the warmer weather hits, people like the idea of a convertible," he said.September sales figures show a 17 per cent jump in sportscar sales, which includes convertibles. Apart from topless motoring, luxury off-roaders are also proving popular. BMW spokesman, Toni Andreevski, said the company's popular X5 off-roader, which opens around $86,000, surged last month on the back of fresh supply from the United States. "We've got more stock and buyers are prepared to spend," he said.TOP 10  BRANDS    Sept           YTD 2009 (+/- on 2008)Toyota                   16,007             142,898       -22.3%Holden                      9744               85,667       -14.0%Ford                          8427               70,289       -13.7%Mazda                       7205               57,695         -7.2%Hyundai                    5484               47,625        36.4%Mitsubishi                4312               40,092        -16.3%Nissan                       4079               38,446       -15.8%Honda                       3939               31,787       -22.9%Subaru                      2807               27,225         -9.0%Volkswagen             2307               22,717         -5.4%